Committee to explore industry and investor aspects of the water sector
The Industry and Regulators Committee will continue its inquiry into the work of Ofwat, the economic regulator of the water industry for England and Wales, by discussing industry and investor issues in the water sector with the water sector’s industry body and the Global Infrastructure Investor Association. The Committee will question whether water companies are overly leveraged and what a reduction in dividend payments might mean for the attractiveness of the sector to investors, whether there is sufficient private capital to fund the infrastructure investments needed to address growing demand in the face of substantial environmental challenges, and whether a single social tariff should be introduced for those struggling to pay their water bills. The Committee will also seek industry and investor views on the governance and performance of Ofwat.
Possible questions include:
- What would a shift from output- to outcomes-based regulation mean for the industry?
- Does the draft methodology for the next Price Review address concerns that Ofwat has focused too much on keeping bills down versus securing the needed levels of investment?
- Is there sufficient strategic oversight of the water sector as a whole and is there a need for an overarching co-ordinating body analogous to the Future System Operator in the energy sector?
- How attractive is the UK water sector to investors and how well does Ofwat engage with the investor community?